Quiz M2
Banks (Depository)
Financial institutions that accept deposits and make loans are called ________ institutions.
Assets, Liabilities
Securities are ________ for the person who buys them, but are ________ for the individual or firm that issues them.
Deposits
The primary liabilities of a chartered bank are ________.
Stock
When I purchase ________, I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors.
A life insurance company
Which of the following is a contractual savings institution?
Credit Union
Which of the following is a depository institution?
They can both be long-term financial instruments
Which of the following statements about the characteristics of debt and equities is true?
Mutual Funds
________ are financial intermediaries that acquire funds by selling shares to many individuals and using the proceeds to purchase diversified portfolios of stocks and bonds.
Money
A financial market in which only short-term debt instruments are traded is called the ________ market.
Secondary
A financial market in which previously issued securities can be resold is called a ________ market.